11/17/2008

The China Human Development Report 2007/08 (versión en chino) calls for accelerating the equal provision of basic public services for every Chinese citizen, and echoes the Government’s new stimulus plans to curb the economic slowdown. Comprehensive institutional and policy reforms are essential for China to provide its people with access to improved health services, education, social security and public employment services, says the Report.

“The government’s agenda places priority on providing basic services, and its fast-paced actions to do so will go a long way to ease the challenges at home and abroad from the financial crisis and economic slowdown” said Khalid Malik, United Nations Resident Coordinator and UN Development Programme Resident Representative in China, at the launch of this timely publication. “These timely actions can make people feel more secure to consume, and in turn, help realize China’s urgent goal of keeping a high economic growth rate,” added Malik.

“With budget revenues higher than 20 percent of GDP, with a high national savings rate and with two trillion dollars in official reserves, China now has the resources to make equitable provision of key public services to all China’s people a reality.”

The China Human Development Report 2007/08 titled “Access for All: Basic Public Services for 1.3 Billion People”, was commissioned by UNDP and produced by the China Institute for Reform and Development after one and a half years of research. The report offers nine specific policy recommendations to help China reduce gaps in basic public services and improve the lives of rural and other vulnerable populations. At the center of these policy recommendations is the right of all Chinese citizens to a clearly defined set of basic public services framed by common standards.

The report notes that China has made huge strides in human development in the last 30 years, and the country’s Human Development Index is now at its highest level, and nearing the status of “high human development”. However, major challenges remain. Human development gaps have widened sharply between urban and rural areas, between the prosperous coastal regions and the poorer interior regions, between men and women, and between registered urban residents and urban migrants.

“China’s achievement has established a foundation for the next period of development, in which sustained reforms in public service institutions and systems can help meet the demands of a more advanced society and economy,” says the Report. “In the new era of Chinese development, real access to basic public services of good quality should be acknowledged as a fundamental right of all Chinese people and a bedrock responsibility of the Chinese government,” says the Report.

Key findings in the Report:

Public services are key to China’s future prosperity. China’s future prosperity and competitiveness depend on the provision of good quality and affordable basic public services, a core set of essential health, education, social security and public employment services for all Chinese citizens, women and men, in urban and rural areas, in wealthier and poorer regions, including migrant workers and their families.

Rural-urban inequality will further widen without affordable public services guaranteed for all. “If poor households do not have access to affordable public services of good quality, the income gap between rural and urban areas will continue to translate into gaps in access to health care, education, safe water and other basic services and create the danger of a poverty trap,” says the Report. “Without strong action, the great gaps in basic public services and the disparities in human capital that they engender may create permanent divisions that are difficult to reverse.”

Higher education is needed to enhance earning power of the poor. The education divide persists between rural and urban areas, and poorer and wealthier regions of the country. The Report points out that not only should the Government guarantee “a basic primary and middle school education, but also set minimum quality standards to ensure higher quality education to allow people to compete in the labour market.”

The health care system should ensure equitable access for rural poor. No public service has more direct impact on human development than health care. Although emphasis has started to shift toward providing better rural health care, rural medical facilities still receive lower investment than urban, and rural medical care systems require large out of pocket expenditures that are still an inhibiting factor for the poor who need medical treatment. New medical insurance programs should provide broad enough coverage that poor rural populations have real health care access.

Fiscal reform is essential. “China's fiscal position has improved dramatically over the last decades but compared to others, China has a low social spending to GDP”, states the Report. Using the available fiscal resources to improve public service delivery will require fiscal reforms. This includes allocating financial resources to local governments responsible for providing public services.

A nationally unified policy is important for the equitable provision of basic public services to rural migrant workers. Migrant workers make great contributions to the economies of the urban areas where they work, but are still denied access to basic public services that are comparable to those received by their neighbors with urban residence status. A national commitment to a unified and comprehensive system of public services for all migrant workers is needed to solve this problem.

Provincial and local authorities should be held accountable. The government should set equitable access to basic public services as its main goal and function. “The accountability of government officials to the equalization of basic public service targets must be strengthened, by giving service indicators a prominent place in performance evaluations.”

Improve the rule of law. For these goals to be achieved they should be given clear foundations in law; a review of all the current legislation and regulations that govern public services should be undertaken and replace them with a systematic, coherent, and enforceable legal and regulatory framework that ensures more efficient public service delivery.

Since UNDP produced the first global Human Development Report (HDR) in 1990, HDRs have emerged as its flagship publication and one of UNDP’s most important policy analysis and advocacy tools. Since 1997 China has produced five National Human Development Reports (NHDRs) covering a range of vital development issues. These NHDR exercises have proved to be successful and worthwhile, playing a unique role in UNDP’s endeavour to support China’s development policy making. The fifth China NHDR, entitled “Access for All: Basic Public Services for 1.3 Billion People”, was coordinated by the China Institute for Reform and Development, a leading think tank based in Haikou, Hainan. Over the years, China’s NHDRs have also become useful reference books for academia and UNDP China’s development partners worldwide. It is gradually evolving into one of the principal instruments for the office to work together with Chinese national think tanks, policy makers and development researchers.

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